You are here

Off Grid Energy Access Fund Preparation Facility [NDF C102]

12.01.2017

This project aims at preparing and establishing the Off Grid Energy Access Fund, an AfDB-led flagship financing initiative for scaling-up access to clean energy for off-grid households and communities throughout Sub-Saharan Africa.

The project consist of co-financing the preparation costs of the Off Grid Energy Access Fund (OGEF), an AfDB-led flagship financing initiative for scaling-up access to clean energy for off-grid households and communities throughout Sub-Saharan Africa.

The concept for OGEF is a USD 100 million investment vehicle designed to provide loans in local and hard currency to off-grid energy companies delivering affordable, stand-alone, household- and small-scale renewable energy solutions. Core objectives are to scale-up access to clean energy for off-grid households and communities throughout Sub-Saharan Africa and demonstrate commercial viability of local currency lending to off-grid companies.

NDF small grant support will share the costs of fund preparation and establishment with the Sustainable Energy Fund for Africa (SEFA), a multi donor trust fund established at the AfDB in 2011 with anchor funding from Denmark. The AfDB launched an international procurement process for a Fund Manager for OGEF in August 2016 resulting in selection of Lions Head Global Partners (LHGP). LHGP will undertake the fund preparation and establishment activities with supervision and support from AfDB and NDF.

NDF engaged early with the AfDB in the planning of this innovative vehicle and will proceed to explore an equity contribution as co-anchor of the Fund.

Financing

The cost of preparation is estimated at USD 1,150,000. NDF will contribute USD 300,000. The AfDB will contribute USD 400,000 via SEFA. The selected Fund Manager will contribute the remainder, largely in the form of staff time and input.